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Hourly Exempt? California Georgia

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  • Hourly Exempt? California Georgia

    I have a question for the board.

    I have recently heard about a change in the compensation plan for certain employees in my industry.

    Via court order, a competitive company (based in California) changed their compensation plan for sales support individuals from an "exempt" status to "nonexempt" and then pays hourly - including overtime.

    These are not sales people and are not paid via commission. They provide sales support services (product demonstrations and documentation services) for the sales team. The role is customer facing and requires a great deal of travel.

    In my company, these folks are paid a salary and a bonus based upon individual and company performance.

    The industry is computer software. Has anyone heard about this? If my company starts paying by the hour, these folks have a ton of overtime to be compensated for.... going back years in some cases.
    Not everything that makes you mad, sad or uncomfortable is legally actionable.

    I am not now nor ever was an attorney.

    Any statements I make are based purely upon my personal experiences and research which may or may not be accurate in a court of law.

  • #2
    Originally posted by cyjeff View Post
    The industry is computer software. Has anyone heard about this? If my company starts paying by the hour, these folks have a ton of overtime to be compensated for.... going back years in some cases.
    Maybe. Maybe not. The key is whether or not the employee(s) in question met the legal qualification for Exempt. Employers are never required to make an employee Exempt and they also are never required to keep an employee as Exempt, even if the employee legally qualifies for the Exempt classification. If the employees were originally misclassified, then the employer certainly has a problem, but changing previously legimiately classified Exempt employee into Non-Exempt Hourly does not create a problem by itself.

    Exempt Hourly is tricky because that is a very difficult and narrowly defined test to meet. Anyone who qualifies under that test would probably also qualify under one of the Exempt Salaried classifications, while the reverse is not true.

    Anyone however can be classified as Non-Exempt.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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